In option 2, your costs are $25k higher.

Once these type investments develop a history, I can see a market similar to peer to peer lending where default rates become standardized and known.  

Albany, Syracuse, Utica, OH, PA, etc.) for cashflow.The challenge in these markets is that demand is through the roof, and many properties either sell at the asking price or above the asking price (Suffolk's sale price average was 1.5% ABOVE the asking price).If I were in your shoes, I'd explore local and remote multi-family options before considering the mid-term rental route.All the best!

Since you're putting 15%-20% down, a conventional investment loan will likely be your best option.

Maybe being a limited partner with some of the really good syndicators out there is an option to this route. 

Give them a couple of options, they already know the unit got foreclosed, most people move to avoid the hassle. 

So those are kind of my options- rent at a loss or sell for the balance.

Lots of loan options can close in an LLC, helocs usually need to close in your personal name.

Might be time to have a conversation about expectations—or consider other options if he’s not the right fit.

As you get to this point your gaining more confidence in the options because you know option A and B had a certain outcome that wasn't option C, and this would give you more confidence you're doing the right thing for you.From there, I would be identifying properties to acquire if you don't already have some in mind and then my next sheet is creating the plan.